[Senate Report 117-107]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 364
117th Congress    }                                     {       Report
                                 SENATE
 2d Session       }                                     {      117-107
_______________________________________________________________________

                                     



 TO AMEND THE POST-KATRINA EMERGENCY MANAGEMENT REFORM ACT OF 2006 TO 
      REPEAL CERTAIN OBSOLETE REQUIREMENTS, AND FOR OTHER PURPOSES

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3499


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                  May 9, 2022.--Ordered to be printed 
                  
                             _________
                              
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
29-010                   WASHINGTON : 2022
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
   Tiffany Ann Shujath, U.S. Department of Homeland Security Detailee
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
















                                                      Calendar No. 364
117th Congress    }                                     {       Report
                                 SENATE
 2d Session       }                                     {      117-107

======================================================================



 
 TO AMEND THE POST-KATRINA EMERGENCY MANAGEMENT REFORM ACT OF 2006 TO 
      REPEAL CERTAIN OBSOLETE REQUIREMENTS, AND FOR OTHER PURPOSES

                                _______
                                

                  May 9, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3499]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3499) to amend the 
Post-Katrina Emergency Management Reform Act of 2006 to repeal 
certain obsolete requirements, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary.............................................. 1
 II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 2
 IV. Section-by-Section Analysis of the Bill, as Reported............. 2
  V. Evaluation of Regulatory Impact.................................. 2
 VI. Congressional Budget Office Cost Estimate........................ 3
VII. Changes in Existing Law Made by the Bill, as Reported............ 3

                         I. Purpose and Summary

    S. 3499 repeals Section 692 of the Post-Katrina Emergency 
Management Reform Act of 2006 (PKEMRA) to conform with 
government-wide requirements. Section 692 of PKEMRA placed a 
limitation on certain Department of Homeland Security (DHS) 
emergency response and recovery contracts to prevent excessive 
subcontracting. Subsequently, a provision in the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 
resulted in government-wide changes to the Federal Acquisition 
Regulation to prevent excessive subcontracting, making Section 
692 unnecessary.

              II. Background and Need for the Legislation

    Section 692 of PKEMRA required DHS to preclude the use of 
subcontracts for more than 65% of the cost of certain emergency 
response and recovery contracts, to prevent excessive 
subcontracting.\1\ However, Section 866 of the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 
directed the Federal Acquisition Regulatory Council to 
institute a government-wide limitation to prevent excessive 
subcontracting, which is 70% of contract cost.\2\ This change 
put the DHS-specific requirements in conflict with government-
wide rules.
---------------------------------------------------------------------------
    \1\Pub. L. No. 109-295 (2006).
    \2\Duncan Hunter National Defense Authorization Act of 2009, Pub. 
L. 110-417 (2008).
---------------------------------------------------------------------------
    The Committee on Homeland Security and Governmental Affairs 
recognized in 2012 that Section 692 was rendered obsolete with 
the issuance of these FAR changes when the Committee included 
repeal of this section in its reauthorization bill for DHS.\3\ 
However, the DHS reauthorization bill did not pass for other 
reasons. The repeal of Section 692 was taken up by the 
Committee again in the 116th Congress as S. 4165 and was 
reported favorably to the Senate in December 2020.\4\ Time ran 
out in the legislative session before this bill could be 
brought to a Senate vote.
---------------------------------------------------------------------------
    \3\S. Rept. 112-249, Sec. 112.
    \4\Senate Committee on Homeland Security and Governmental Affairs, 
To Repeal Section 692 of the Post-Katrina Emergency Management Reform 
Act of 2006 (Dec. 14, 2020) (S. Rept. 116-320).
---------------------------------------------------------------------------

                        III. Legislative History

    S. 3499 was introduced by Chairman Gary Peters (D-MI) on 
January 13, 2022, with Ranking Member Rob Portman (R-OH) as 
cosponsor. The bill was referred to the Committee on Homeland 
Security and Governmental Affairs.
    The Committee considered S. 3499 at a business meeting on 
February 2, 2022. The bill was ordered reported favorably by 
voice vote en bloc with Senators Peters, Carper, Hassan, 
Sinema, Rosen, Padilla, Ossoff, Portman, Lankford, Scott, and 
Hawley present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Repeal of obsolete DHS contracting requirements

    This section repeals Section 692 of the Post-Katrina 
Emergency Management Reform Act of 2006 (6 U.S.C. 792).

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's (CBO) statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 2, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3499, a bill to 
amend the Post-Katrina Emergency Management Reform Act of 2006 
to repeal certain obsolete requirements, and for other 
purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    S. 3499 would repeal a provision concerning limits on 
tiered subcontracting of disaster assistance provided by the 
Federal Emergency Management Agency (FEMA). The provision was 
enacted as part of the Post-Katrina Emergency Management Reform 
Act of 2006. However, since the passage of that law, FEMA has 
not implemented the provision.
    On that basis, CBO estimates that repealing the provision 
would have no effect on the federal budget.
    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 6--DOMESTIC SECURITY

           *       *       *       *       *       *       *


CHAPTER 2--NATIONAL EMERGENCY MANAGEMENT

           *       *       *       *       *       *       *



Subchapter II--Comprehensive Preparedness System

           *       *       *       *       *       *       *



PART D--PREVENTION OF FRAUD, WASTE, AND ABUSE

           *       *       *       *       *       *       *



[SEC. 792. LIMITATIONS ON TIERING OF SUBCONTRACTORS.

    [(a) Regulations.--The Secretary shall promulgate 
regulations applicable to contracts described in subsection (c) 
to minimize the excessive use by contractors of subcontractors 
or tiers of subcontractors to perform the principal work of the 
contract.
    [(b) Specific Requirement.--At a minimum, the regulations 
promulgated under subsection (a) shall preclude a contractor 
from using subcontracts for more than 65 percent of the cost of 
the contract or the cost of any individual task or delivery 
order (not including overhead and profit), unless the Secretary 
determines that such requirement is not feasible or 
practicable.
    [(c) Covered Contracts.--This section applies to any cost 
reimbursement type contract or task or delivery order in an 
amount greater than the simplified acquisition threshold (as 
defined by section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403)) entered into by the Department to 
facilitate response to or recovery from a natural disaster or 
act of terrorism or other manmade disaster.]

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